EU Parliament Votes to Extend EU ETS to Shipping Sector

18 September 2020 | Trading


The European Parliament has adopted a proposal from Member of Parliament Jutta Paulus to extend the EU Emissions Trading System to the shipping industry from January 2022, Paulus told OPIS Tuesday.

"We hope that negotiations with Council and Commission will start as soon as possible," she added.

The proposal is also asking for a reduction in carbon intensity of 40% from the shipping sector by 2030, compared to 2018-2019 baseline levels.

Wijnand Stoefs, policy officer at NGO Carbon Market Watch said that they were calling on the German presidency of the Council "to kick-start the negotiations" with the Parliament and Commission as soon as possible.

The non-government organisation Transport and Environment said it was urging President Ursula von der Leyen's European Commission to "quickly propose" both the carbon dioxide limits from shipping that the parliament has demanded, as well as the inclusion of the sector in the ETS.

The European Commission is responsible for planning, preparing and proposing new European legislation. It can also respond to invitations to do so from the European Parliament. Once the European Commission tables a proposal, it must be adopted by both the European Parliament and the Council of EU Member States before it becomes a law.

The inclusion of international shipping into the EU ETS would lead to regulation of vessel operations on several of the world's seas and oceans, including areas adjacent to those non-EU nations undermining global efforts to reduce greenhouse gas emissions, according to the shipping association World Shipping Council.

Numerous less-developed countries would face an extra charge on trade simply because their goods are routed through the EU, and an EU ETS with extraterritorial effect would harm the prospects for a solution through the International Maritime Organization (IMO), the Council said last week.

Further development of the proposals is expected to take place at the next IMO intersessional working group in October.


Source: OPIS